Why the end of “de minimis” can hurt consumers-personal income

On May 1, 2025, containers are loaded and unloaded in the port -degessi container.

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Trump administration is there pruning The “De Minimis” rule on Friday, which can lead to rising consumer prices that buy inexpensive online goods, and this can cause a closest deficit for some items, economists and trade experts said.

“This is a mass change for the US consumer,” said Ratna Sharad, CEO of SpurodCloud, a cross-border logistics firm.

“Pretty Big Price Increase”

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Most of the supplies come from China, which accounts for about 60%, said Sharad.

President Donald Trump ended the exemption from the minimum for China in May. Now it is doing the same for the rest of the world.

Cheap items purchased on the Internet and are sent to consumer thresholds will be painted, whereas earlier they applied only on packages over $ 800, said Sharad.

All supplies – including beauty products from Korea, leather shoes from Italy, kitchen knives from Japan – will be caused by additional payments and taxes, such as tariffs that the Trump administration has covered most of the US trading partners.

“For the consumer, this can be a rather large increase in prices,” said Mary Maria, senior employee of the International Economy Institute Peterson, whose study specializes in trading with China and global supply networks.

“Program Trading Policy”

Amazon delivery for delivery for delivery, Manhattan, New York.

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The actual increase in prices for consumers will depend on many factors such as Tariff tariffs characteristic of the countryThe US duties contain goods and production materials, and how businesses are correcting prices, economists said.

Here’s how the end de minimis will affect some specific consumer goods according to Analysis of the taste of the class:

  • 30 dollars of slippers (light, premium) from China would cost about $ 45, which is 51%;
  • Nutrient supplements of $ 37 (based on plants, performance) from Canada will cost about $ 60, which is 60%;
  • A 240 dollar boss knife (with wooden handle and white steel) will cost about $ 298, 24%.

Pablo Figelbaum, Professor of Economics at the University of California, Los Angeles, and AMIT Handelwal, Professor of Yale Economics, writes that de minimis is a distress policy.

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The end of the rule will be disproportionately damaged by low -income and minority households that will get more financial benefit from duties than richer households, reports research They published in February.

“Most people (using a minimum release) are people who lived on the budget and are concerned about prices,” the prayer said. “I think some people just buy less.”

Not only is it consumers: small businesses will also have to adapt to the new regime, said lovely.

It exerts more pressure on them when tariffs already increase their costs for goods and production materials such as steel and aluminum, she said.

More transparency for imports

Trump Administration claims to cancel the rule de minimum will restrict Trade of fakes, banned drugs and weapons of bad actors.

Currently, the government understands little Deminimis deliveries due to simplified customs clearance procedures for them, lawyers of the law firm Hogan Lovells wrote Recently.

The collection of duties for more imports also brings federal tax revenues, economists said.

De minimis recall will lead to a decrease in world trade: Hing's Foundation

However, the supervision of these deliveries creates a greater administrative load and requires more workforce for screen packages – all this comes with additional costs for the federal government, economists said.

It is unclear whether there will be an additional tax income collected by the federal government, exceeding additional expenses, LOVELA said. “I don’t think we will never know.”

The Customs Service and Border Protection Press did not immediately unable to comment on the story.

Meanwhile, postal services in Australia, India, Japan, New Zealand, Switzerland, UK and other European nations recently said they would Suspected deliveries to the US Among the confusion about issues such as the customs duties will be collected.

While the trading system will eventually be corrected, there may be delays and higher prices in the short term, economists said.

In the immediate impact, there may be “inaccessibility” of some subjects, especially when the holidays are approaching at the end of the year, said Ernie Tedeshi, the director of the Yale University’s budget laboratory and the former chief economist of the White House Economic Advisers during the Baden administration.

“I wouldn’t say it would have a great macroeconomic influence on the US,” Tedeska said. “Given that for some people it causes a big headache,” he added.

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